Regulatory News:

GeNeuro (Paris:GNRO) (Euronext Paris: CH0308403085 – GNRO), a biopharmaceutical company developing new treatments for autoimmune diseases including multiple sclerosis (MS), reports today on its cash and revenue at December 31, 2016.

At 31 December 2016, cash and cash equivalents of the group amounted to €34.5 million. During the fourth quarter of 2016, GeNeuro recognized €1.7 million of revenue from milestone payments from Servier as part of the ongoing clinical trials for its lead therapeutic candidate, GNbAC11, compared to €1.5 million during the fourth quarter of 2015.

Full year revenues displayed a strong growth to €6.4 million vs. €2.5 million for 2015, reflecting the progress of the CHANGE-MS clinical trial.

Cash used for operations and investing activities was €16.0 million, of which €5.5 million was for non-recurring items (i.e. €2.5 million for IPO costs, €0.9 million for a milestone payment to bioMérieux for starting the Phase 2b study, €1.1 million for GNbAC1 production costs, €0.3 million of capital expenditures and €0.75 million used by the share liquidity contract).

Cash used was also partly mitigated by the first payment of €4.1 million from Servier to finance the ANGEL-MS extension study, out of which €0.6 million was used during the Q4 2016. Excluding all ANGEL-MS related items, cash used by operating and investment activities was €19.6 million during 2016. Compared to the Company’s original forecast of €17.0 million, the difference emanates from the liquidity contract for €0.75 million and for the balance from the frontloading of payments for the CHANGE-MS clinical trial resulting from its faster recruitment. These financial results are thus in line with the Company’s overall expectations.

GeNeuro’s strategy for 2017 remains fully focused on developing GNbAC1 for multiple sclerosis (MS), with the 6-month top line results from CHANGE-MS expected in early Q4 2017. The first patient administration under the ANGEL-MS extension study is on track for Q2 2017. The Company also is preparing a Phase 2a trial to study GNbAC1 in Type 1 diabetes patients, which will be initiated in H1 2017. In addition, a U.S. Phase 2 trial in secondary progressive MS patients will start in H2 2017.

Upcoming financial release: FY 2016 results on Thursday 27 April 2017

Upcoming investor events:

Journée Valeurs Moyennes de la SFAF (Société Française des Analystes Financiers)
18 April 2017, Paris, France

BIO International Convention 2017
19-22 June 2017, San Diego, USA

Spring Mid Cap Event
28-29 June 2017, Paris, France

Upcoming scientific presentations:

Presentation on “The Envelope Protein of Human Endogenous Retrovirus Type W is Abnormally Expressed in T1D Patients, Impairs Insulin Secretion and Causes Hyperglycemia” at the 2017 JDRF nPOD 9th Annual Scientific Meeting: 19-22 February 2017 in Fort Lauderdale, USA

Second International Workshop on Human Endogenous Retroviruses and Diseases: “Human endogenous retroviruses: the enemy within that connects neuroinflammatory and neurodegenerative disorders”, 13-14 March 2017, Washington DC, USA

About GNbAC1

The development of GNbAC1 is the result of 26 years of research into human endogenous retroviruses (HERVs), including 15 years at Institut Mérieux and INSERM, a French national medical research institute. Found in the human genome, certain HERVs have been linked to various autoimmune diseases. Researchers have demonstrated that the toxic Env protein, associated with MSRV (Multiple Sclerosis RetroVirus) and identified in patients with MS, particularly in active lesions, stimulates the inflammatory processes via an interaction with the TLR4 receptor involved in the innate immune system, and blocks neuron remyelination. By neutralising MSRV-Env, GNbAC1 could at the same time block these pathological inflammatory processes and restore remyelination. As MSRV-Env has no known physiological function, GNbAC1 is expected to have a good safety profile, without affecting the patient’s immune system, as observed in all clinical trials to date.

About GeNeuro

GeNeuro‘s mission is to develop safe and effective treatments against neurological disorders and autoimmune diseases such as multiple sclerosis by neutralizing causal factors encoded by HERVs, which represent 8% of human DNA; a new frontier pioneered by GeNeuro since 2006 and based on research by Institut Mérieux and INSERM.

GeNeuro is based in Geneva, Switzerland and has R&D facilities in France at sites in Archamps, Haute-Savoie and Lyon. It has 30 employees and rights to 16 patent families protecting its technology.

For more information, visit: www.geneuro.com

Cautionary Statement Regarding Forward-Looking Statements: This press release contains certain forward - looking statements and estimates concerning GeNeuro’s financial condition, operating results, strategy, projects and future performance and the markets in which it operates. Such forward-looking statements and estimates may be identified by words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “is designed to,” “may,” “might,” “plan,” “potential,” “predict,” “objective,” “should,” or the negative of these and similar expressions. They incorporate all topics that are not historical facts. Forward looking statements, forecasts and estimates are based on management’s current assumptions and assessment of risks, uncertainties and other factors, known and unknown, which were deemed to be reasonable at the time they were made but which may turn out to be incorrect. Events and outcomes are difficult to predict and depend on factors beyond the company’s control. Consequently, the actual results, financial condition, performances and/or achievements of GeNeuro or of the industry may turn out to differ materially from the future results, performances or achievements expressed or implied by these statements, forecasts and estimates. Owing to these uncertainties, no representation is made as to the correctness or fairness of these forward-looking statements, forecasts and estimates. Furthermore, forward-looking statements, forecasts and estimates speak only as of the date on which they are made, and GeNeuro undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise, except as required by law.

1 In accordance with IAS 18, milestone payments are recorded as income in the income statement, according to services rendered as part of Phase 2b clinical trial, realized under the direction and the responsibility of GeNeuro, and are therefore spread throughout this clinical trial, from 2015 to 2018.